If you are not using your Demat account for long, but still keep getting charged yearly fees. It is better to close all your inactive or zero balance Demat accounts. It attracts annual fees and maintenance charges. Thus, if there are active balances, they can be consolidated into one account and the remaining redundant accounts can be closed.
Opening a Demat account is now a completely online process. However, closing a Demat account is not an easy task. It involves paying a visit to the broker’s office and submitting forms and documents. Let us understand in detail how to Close the Demat account?
You need to include the following details while submitting your closure form:
There are only two depositories in India, NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited).
You can download the form by visiting your depository website or broker.
To close your account, the foremost thing is to ensure whether there are any shares in the account. If there are, you need to transfer them to another account. You need to make sure your Demat account is empty before you can decide to close it.
Negative cash balance can increase due to the non-payment of annual maintenance fees or any other charges. If you request an account closure without settling your account, your application will be rejected.
You should mention the details of the new depository account if any and a few other details. Once the request is successfully submitted, the depository takes nearly 4-6 working days to complete the procedure.